Form 1023, Part VI, Section 1b
African Youth Outreach, Inc. (AYO) supports orphan projects in southern Africa through the Youth Care Fund (YCF). YCF functions as a route to directly support these orphan projects by direct funding of their programs, and providing donated goods. Members of AYO who visit with and participate in the orphan project’s programs also provide services on a volunteer basis.
Direct funding is provided to select HIV/AIDS orphan projects in southern Africa. The Board of Directors selects (or ‘adopts’) orphan projects by the following criteria:
1. The orphan project is located within the KwaZulu-Natal region of South Africa, Swaziland, or Mozambique.
2. The project is formed solely for charitable purposes and qualifies as a tax-exempt, nonprofit organization under section 501 (c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code.
3. The project has been in existence for two years.
4. The project has made available financial reports that show transparency and fiscal responsibility in using donated funds.
5. The project is able to provide documented plans for the utilization of the funds to be dispersed.
6. The project has demonstrated a financial need.
7. The project has been visited by at least one voting member of the organization who has examined its activities and facilities. The executive director of the orphan project (or local representative) is to meet with this member to provide the necessary documentation (financial records, funding proposal) to support the orphan project’s request for funding. This documentation is to be reviewed by the Board.
8. The Board of Directors selects the orphan project by a majority vote.
9. Support of an orphan project may be discontinued by AYO by a majority vote of the Board for any of the following reasons:
a. The project has lost communication with AYO including but not limited to inability to submit financial reports in response to funding or all email or phone contact.
b. The project has unstable finances, membership, or facilities that would make them unable to receive funds and use them as described in submitted funding proposals.
c. The project no longer qualifies as a tax-exempt, nonprofit organization under section 501 (c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code.
d. If there is evidence for misuse of funds.
e. If the Board of Directors, at its discretion, deems the orphan project no longer appropriate for support.
Funding thereafter is provided to the adopted HIV/AIDS orphan projects pending review of each funding proposal from the orphan project. This is regulated by the following guidelines:
1. Each funding proposal is reviewed by the Board of Directors and accepted or rejected by a majority vote.
2. Each proposal must be from an ‘adopted’ orphan project.
3. Each proposal must specify financial need, the purpose for the funding, and the monetary request (in U.S. dollars). The proposal must also stipulate that an annual report will be submitted to account for how the funding was used.
4. The proposal must acknowledge AYO authority to suspend the grant and/or recover funds disbursed in the event funds are misused.
5. The proposal need not specify the responsibilities of AYO or the recipient orphan project apart from provision of an annual report.
6. Those proposals accepted are funded continuously by AYO as funds are made available. If the proposal is for a limited (or ‘one-time only’) program, then that program will be funded to the request as approved by the Board of Directors and then terminated. The orphan project is then required to submit a final report to account for how the funding was used.
7. The monetary disbursements are to be authorized by either the Treasurer or managing director if the proposal is accepted by the Board of Directors.
8. The orphan project receiving funding by this process is to submit annual reports to AYO detailing how the funds were used.
9. AYO acceptance of a proposal does not obligate the orphan project to use funds only for the described purpose of the grant. If this occurs, the recipient organization will use the annual report to describe the purpose for which the funds were used. This rule is in place in the event an orphan project has a more pressing need that developed after approval of the grant.
10. At any time, the Board may vote (by majority) to cancel a given funding program due to inadequate funding availability or upon completion of the proposed program. The Board may also terminate a funding program at any time if there is evidence of misuse of funds or failure to submit documentation of fund utilization by the orphan project. Failure to submit annual reports will result in termination of all funding to that orphan project.
11. Subsequent proposals may request expansion of the purpose and funding of a previous proposal. If approved, this grant will take the place of the previous grant.
12. These guidelines may be changed at the Board’s discretion under exceptional circumstances, which will be documented upon approval of the given proposal.
AYO will provide donated goods to adopted orphan projects, as the goods are made available. Donation drives will call for donation of goods that can be used by orphan projects, and can increase awareness of HIV/AIDS. The adopted projects are expected to provide a list of goods that are in short supply. Donated goods will be transported directly by visiting members or by overseas shipments.